Purchase orders count as soon as they are confirmed.
A confirmed purchase order reduces the available amount, even before the invoice arrives.
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Budget
A confirmed purchase order reduces the available amount. Direction par Horizon brings purchase orders, invoices, hours and materials together by cost code to track costs and explain variances.
A budget connected
to the job site.
Direction par Horizon: a budget adapted to your cost codes and tracking methods.
Invoices stay linked to the right cost code.
Supplier invoices attach to their budget line. Track invoiced amounts alongside purchase orders.
Your hours feed into the budget.
Approved hours feed the labour cost for the work item. Your budget also tracks your team’s work.
Purchase ordersInvoicesLabour
What your team
gains.
A budget that evolves
Accepted change orders revise the budget; invoices, hours and materials explain the costs of each item.
Confirmed purchase orders
The available amount is the revised budget minus the higher of confirmed purchase order totals or invoice totals, minus labour and materials.
How do you know what is still available in a job budget?
Direction par Horizon compares the revised budget with purchase orders and expenses for each cost code. To calculate the available amount, the system subtracts the higher of confirmed purchase order totals or supplier invoice totals from the revised budget, followed by allocated labour and materials. A confirmed purchase order therefore reduces the available amount before the invoice arrives, without counting its amount twice.
How can we spot a cost overrun before the job is finished?
Actual cost includes supplier invoices, labour and materials allocated to the job. The available amount also accounts for confirmed purchase orders that have not yet been invoiced. A confirmed purchase order reduces the available amount before the supplier’s invoice arrives.
Can we find the expenses behind a budget line?
Yes. Each line brings together the purchase orders, supplier invoices, hours and materials allocated to the same cost code. The project manager can compare the planned amount with the expenses that explain the actual cost, then review the relevant documents before deciding what to do.
What happens to accepted change orders and material returns?
The cost of a won change order increases the relevant items in the revised budget. An approved material return reduces the material cost allocated to the job. Direction par Horizon brings these movements in from the relevant modules while your team checks their allocation and recorded amounts.